Which One of the Following Is a Correct Ranking of Securities

question 1

Multiple Choice

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2005 for US securities? Rank from highest to lowest.

• A)large company shares,U.S.Treasury bills,long-term government bonds
• B)small company shares,long-term corporate bonds,large company shares
• C)small company shares,long-term government bonds,long-term corporate bonds
• D)small company shares,large company shares,long-term corporate bonds
• E)long-term corporate bonds,large company shares,U.S.Treasury bills

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly tied to production.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or product.

Direct Labor

The cost of workers who are directly involved in the production of goods or services.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs such as utilities, maintenance, and salaried staff.